Oh dear. It seems you have no Idea about the Palestinian problem. It's the only thing 100% of Arab (and mulim in general) population fully agree upon. If you try to argue in favor of Israel in Arab public spaces, chances are you'll get lynched by everyone. In fact, I remember a Saudi prince once said that Israelis had the right to have a place they call home. This resulted in a huge public outcry all over the Arab world, with people proclaiming that the saudis can no longer represent Islam and had to be deposed, until the king came out and stated that this prince's opinion didn't represent that of Saudi Arabia as a whole.
In every muslim country that I know of, and they're many, The situation in Palestine is taught to children from a very young age and presented as a cause worth fighting and dying for. Those who stand up to Israeli occupation forces and those who die doing it, ranging from kids throwing rocks at tanks all the way to scientist helping Hamas build guided rockets and drones (happened in my country, guy was assassinated by mossad), are presented as heroes and martyrs by all types of media available: radio, TV news, TV series, movies, school events, teachers during classes, etc.
What I'm trying to say here is that Israel has no choice here, especially with the waning pressure on muslims from the west. They must negotiate, compromise, and try to find a common middle ground, or they'll never know peace with 1.3 billion humans.